A Company Reported That Its Bonds with a Par Value

question 40

Multiple Choice

A company reported that its bonds with a par value of $50,000 and a carrying value of $57,000 are retired for $60,000 cash,resulting in a loss of $3,000.The amount to be reported under cash flows from financing activities is:

• A)$ (3,000).
• B)$ 60,000.
• C)$(57,000).
• D)Zero.This is an operating activity.
• E)Zero.This is an investing activity.

---

Definitions:

Copyright Protection

Legal rights granted to creators and authors over their original works, preventing unauthorized reproduction or use for a limited time.

Fair Use

A legal doctrine allowing limited use of copyrighted material without needing permission, typically for purposes such as criticism, comment, news reporting, or research.

Double-Declining-Balance

A method of accelerated depreciation where an asset's value decreases at double the rate of traditional straight-line depreciation.

Book Value

The original cost of an asset minus accumulated depreciation.